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The Mumbai-headquartered private sector lender’s September quarter shareholding pattern shows a substantial reduction in foreign institutional investors (FIIs) stake. FII holding has decreased to 55.53%, down from 59.62% in the June quarter.
After the recent FII sell-off, the foreign room now stands at 24.96%. If FII holding decreases by just 0.03 basis points, the foreign headroom will exceed 25%, potentially leading to a doubling of the bank’s weight in MSCI during the February 2025 review, said Abhilash Pagaria of Nuvama Alternative & Quantitative Research in a note.
This will be considered in February 2025 review.
In terms of MSCI weight up (close to 58 basis points probable weight from 30 basis points), the foreign headroom is now just below the critical 25% threshold, with MSCI currently applying a half-float factor.
“This weight increase could result in inflows of approximately $290 million, translating to about 17 million shares, which would likely have an impact over five trading days,” according to Nuvama Alternative Research.
Sharing its business update for the September quarter, IndusInd Bank reported a year-on-year rise of 13% in net advances, which grew to ₹3.57 lakh crore from ₹3.15 lakh crore in the same quarter last year.
Deposits surged by 15% on-year to 4.13 lakh crore as of September 30, 2024, compared to ₹3.60 lakh crore in the same period last year.
IndusInd Bank has also announced the reappointment of Sumant Kathpalia as managing director and chief executive officer for another three-year term.
Kathpalia’s new term will commence on March 24, 2025, and extend through March 23, 2028, pending approval from the Reserve Bank of India (RBI) and the shareholders of the bank. He has been serving as MD and CEO since March 2020.
The stock is trading at multi year lows.
IndusInd Bank shares were trading marginally lower at ₹1,340.45 on NSE late morning session on Friday, October 18.
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